Is a Bhc franchisee permitted to use trademarks other than the Marks approved by the franchisor?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Franchisor hereby grants Franchisee the right during the term hereof to use and display the Marks in accordance with the provisions contained in this Agreement and in the Operations Manual, solely in connection with Franchisee's operation of the Franchised Business at the Franchised BHC Restaurant, and in the Territory. Neither Franchisee nor any Principal Equity Operator nor any employee, agent, or representative thereof may use, display, or permit the use or display of trademarks, trade names, service marks, insignias, or logo types other than the Marks and other trademarks and service marks approved for use by Franchisor in connection with the Franchised Business. Neither Franchisee nor any Principal Equity Operator nor any employee, agent, or representative thereof may use or display the Marks and Intellectual Property in connection with the operation of any business or other activity that is outside the scope of the Franchised Business. Franchisee may only use the Marks and Intellectual Property on the Internet or other electronic media in the manner and as specifically authorized by Franchisor in the Operations Manual or otherwise in writing. Franchisee agrees to be responsible for and supervise all its employees and agents to insure the proper use of the Marks and Intellectual Property in compliance with this Agreement.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees are explicitly restricted from using any trademarks, trade names, service marks, insignias, or logo types that have not been pre-approved by Bhc. This restriction applies to the franchisee, any principal equity operator, and all employees, agents, or representatives associated with the franchise. This policy ensures brand consistency and protects Bhc's trademarks. Franchisees are only authorized to use the specific Marks that Bhc designates for the operation of the franchised business. Bhc will provide franchisees with a schedule of approved Marks and will update this schedule as necessary.
This restriction extends to all aspects of the business, including online presence. Franchisees can only use the Marks and intellectual property on the Internet or other electronic media in a manner specifically authorized by Bhc in the Operations Manual or in writing. Franchisees are responsible for ensuring that all employees and agents comply with these trademark usage guidelines. This includes supervising their use of the Marks and intellectual property to maintain compliance with the franchise agreement.
The franchise agreement emphasizes that the franchisee's right to use Bhc's Marks and intellectual property is a temporary, authorized use granted under the agreement. Bhc retains all ownership interests in the Marks, and all goodwill generated by the Marks benefits Bhc. Unauthorized use of the Marks outside the scope of the agreement constitutes an infringement of Bhc's exclusive rights. Upon termination, cancellation, or expiration of the franchise agreement, the franchisee must immediately cease all use of the Marks and take steps to remove any references to the trademarks from online platforms.
These strict controls over trademark usage are typical in franchising. They allow Bhc to maintain a consistent brand image across all locations, which is crucial for customer recognition and trust. Prospective franchisees should carefully review the list of approved Marks and understand the limitations on their use to avoid any potential legal issues or breaches of the franchise agreement.